Risky investment strategy employed by option writers that allows them to sell options without owning the underlying security. This tactic can lead to large profit or loss depending on the direction that option writer projected and the actually direction that the security takes.
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- Writing Naked - Financial Dictionary - The Free Dictionary
An investment strategy that involves selling naked options. A naked option is an option contract without another, opposite option hedging the risk. Unlike more ...
- What is writing naked? definition and meaning
Definition of writing naked: Risky investment strategy employed by option writers that allows them to sell options without owning the underlying security.
- Writing Naked: Definition from Answers.com
strategy used by an option seller in which the trader does not own the underlying security. This strategy can lead to large profits if the stock moves.
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- Writing naked options (OTM)- requirements | TradeKing
What are the requirements before you can do the same?